Bangalore ranks high in Residential Property

Post the declining trend of ages long, the IT-led cities of Bangalore and Pune have excelled in the capital appreciation in residential projects. However, Mumbai and Delhi-NCR have since always provided the property shoppers maximum capital value appreciation.
 

Bangalore has striked sharply the highest average capital appreciation of 41% in the mid-income housing segment (property below Rs.5000 per sqft) in the first half of 2011 and in the identical period this year as well, whereas Pune was figured with a 28% growth. And surprisingly, Pune announced a 39% growth in the same period in capital hike for premium project segment (above Rs.5000 per sqft) which marks the highest in the country in that market segment. And Bangalore was falling somewhat close behind with a 37% hike, on the other hand Delhi/NCR and Mumbai faced 24% of capital appreciation in both the segments which has been labeled as a low-grade in India's top performing real estate markets. Kolkata experienced a price rise of reasonable 26%, as stated by the International Property Consultants Cushman & Wakefield.

The fact being observed is the end-user driven market like Bangalore, Pune have marked for a highest capital hike and on the other hand the investor-driven markets such as Delhi/NCR, Mumbai have not pulled it off that well, as mentioned by Shveta Jain the Executive Director of Residential Services in Cushman & Wakefiel.

With not-so-identical & reasonable mutual relation between IT sector and property price appreciation, it is figured that growth in Indian IT Sector has given birth to a plethora of job creation opportunities & salary hike. Also the cities whose economies are majorly driven by IT are anticipated to encounter flair of vigorous demand for mid-income as well as the high-end housing properties, a statement by Sanjay Bajaj MD-Pune of real estate consultancy firm JLL India.

Level of aspiration among home seekers along with their purchasing power, inclination towards international housing and luxury standards, and awareness about environmental sustainability etc have been noticed with an extensive evolution of IT driven cities.

In 2008 & 2010 wherein property prices were peaking in Mumbai and Delhi-NCR and on the other hand a mark of no growth in real estate prices in Bangalore & Pune after reaching at a certain level was figured, said by Pankaj Kapoor, MD of real estate research firm Liases Foras. Further he adds, India’s prime two metro cities Delhi, Mumbai are facing a sluggish demand and price correlation and Bangalore, Pune have gained a lot of benefit from the non-resident Indian segment and private equity funding.

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